1. Cross-functional issues
Part 7
Cross-functional issues

2. Slide 30.1
Global Thinking
Concerned with all things that are different in doing business in more than one country at a strategic level
Local thinking is informed by global thinking but carried out separately, as all action is local

3. Global Thinking - HR Issues
Slide 30.2
Global Thinking - HR Issues
How cultural differences between countries can be accommodated
How effective communication can be maintained across national boundaries
Reference to employment aspects in localities

4. Globalisation Has become a dirty word
Slide 30.3
Globalisation
Has become a dirty word
Blamed for many ills in the developing world
HRM has to contend with human resource implication of globalisation

5. Internationalisation
Slide 30.4
Internationalisation
Most complex form of decentralising operations
Involves differences in language, culture, economic, political, legislative systems, etc
HRM helps to shape strategic direction
HR remains one of the last centralising forces
Decentralisation needed to empower subsidiaries
International HR still lacks accepted definition

6. Importance of National Culture
Slide 30.5
Importance of National Culture
Nationality has an effect on human behaviour
Certain elements of national culture remain deeply rooted
Cultural diversity
Framework for fitting together the maze of cultural diversity - Hofstede

7. Differences in National Cultures
Slide 30.6
Differences in National Cultures
Individualism
Power distance
Uncertainty avoidance
Masculinity
Confucian dynamism (added later)
(Hofstede, 1991)

8. Cultural Differences Between Nations (1 of 4)
Slide 30.7
Cultural Differences Between Nations (1 of 4)
Table 30.1  Cultural differences between nations Source: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill.

9. Cultural Differences Between Nations (2 of 4)
Slide 30.8
Cultural Differences Between Nations (2 of 4)
Table 30.1  Cultural differences between nations Source: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill.

10. Cultural Differences Between Nations (3 of 4)
Slide 30.9
Cultural Differences Between Nations (3 of 4)
Table 30.1  Cultural differences between nations Source: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill.

11. Cultural Differences Between Nations (4 of 4)
Slide 30.10
Cultural Differences Between Nations (4 of 4)
Table 30.1  Cultural differences between nations Source: Based on material in G. Hofstede (1991) Cultures and Organizations: Software of the Mind. London: McGraw Hill.

12. Clusters of National Cultures
Slide 30.11
Clusters of National Cultures
Pyramid of people – examples: Arab speaking, Greece, Spain
Well oiled machine – examples: Austria, Finland, Germany
Village market – examples: Britain, Denmark, USA
Family – examples: India, Singapore, West Africa

13. Strategic Implications of Cultural Diversity
Slide 30.12
Strategic Implications of Cultural Diversity
Centrality of decision making
Rewards & competition
Risk
Formality
Organisational loyalty
Short- or long-term orientation
(Hodgetts & Luthans, 1991)

14. International Communication
Slide 30.13
International Communication
A major challenge for HR
What did he say?
What did he mean?

15. Barriers to Effective International Communication
Slide 30.14
Barriers to Effective International Communication
Frame of reference
Stereotypes
Cognitive dissonance
Language
Jargon
Corporate culture

16. Purposes of International Communication (1 of 2)
Slide 30.15
Purposes of International Communication (1 of 2)
Reinforce group culture so as to improve speed & effectiveness of decision making
Encourage information exchange in internationally related activities
Form the background to succession planning activity
Establish in people’s mind what is expected of them by parent company

17. Purposes of International Communication (2 of 2)
Slide 30.16
Purposes of International Communication (2 of 2)
Facilitate change in a way acceptable to the parent company
Undermine the ‘not invented here’ attitudes and thereby encourage changes
Improve the attractiveness of the company in the recruitment field
Encourage small activities which may be tomorrow’s cream & give activities perspective
(Foulds & Mallet, 1989)

18. Conventional Approaches to Co-ordination
Slide 30.17
Conventional Approaches to Co-ordination
Japanese centralisation
American formalisation
European socialisation
(Bartlett & Ghoshal, 1989)

19. Increasing the Range Evangelisation Standards and norms Systems
Slide 30.18
Increasing the Range
Evangelisation
Standards and norms
Systems
Concentration of capability

20. Slide 30.19
Evangelisation
Evangelisation – process of winning acceptance of a common mission & shared purpose throughout the organisation
Works through shared belief
Works through parables
Can use apostles

21. Slide 30.20
Summary (1 of 2)
International HRM still lacks an accepted definition and content
Much international management activity is via multinational companies & policies of globalisation
Understanding cultural diversity is crucial
Hofstede concluded cultures had 4 dominant value systems
Hodgetts and Luthans suggested that Hofstede’s findings influenced aspects of management

22. Slide 30.21
Summary (2 of 2)
Communication is exacerbated by differences in frames of references, stereotyping, cognitive dissonance & language
There are three broad types of traditional forms of co-ordination
More particular forms of co-ordination include evangelisation, standards & norms, systems, and locating capability